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Stanlow Manufacturing Complex
Leading market position
• Positioned to serve the UK Energy
Corridor
• Integrated into extensive pipeline
logistics with good road links
Superior assets
• Complex Refinery with a
comprehensive product slate with
speciality production
• Strong focus on Asset Integrity and
Reliability, and managing Asset Lifecycle
2
Stanlow Refinery – Significant Potential
• Acquired by Essar Energy 31 July 2011
• Fully integrated Stanlow into Essar Energy
o Maintained strong operating and safety
performance
• Initiated 100 day plan; delivery well on track
o Reviewed all aspects of refinery operations
o Identified over US$3/bbl of sustainable GRM
improvement projects
o Benefits higher than original acquisition plan
• Inventory monetisation transaction with Barclays
o Repaid working capital facility and released
margin money
3
75
75
75
0
50
100
150
200
250
FY12-13 FY13-14 FY14-15
Optimisation Projects
• Identified US$3/bbl of sustainable
margin improvements to be
delivered by end FY2014
• Targeted capex investments with
high returns, e.g. natural gas
• Other margin enhancing projects
with minimal capex:
o Introduction of “opportunity
crudes” and crude blending
o Closure of lubricants production
• c.US$1/bbl margin benefit already
delivered, a further US$2/bbl being
secured over coming months
• c.US$225 million uplift to EBITDA is
achievable
Stanlow Incremental EBITDA Opportunity
Year
en
d r
un
rat
e (U
S$ m
illio
n)
4
Solid Operating Performance
Crude Throughput (MT) Crude Mix
Product Mix Sales Mix
5.2 5.2
0.0
2.0
4.0
6.0
8.0
6M ended Mar 2012 6M ended Sep 2012
93% 90%
7% 6% 1%3%
0%
20%
40%
60%
80%
100%
6M ended Mar 2012 6M ended Sep 2012
Light, 39%
Medium, 56%
Heavy, 5%
Domestic, 84%
Exports, 16%
• In 2012, broke site record for number of work hours without a lost time injury (10 million). Achieved during transition period
• World class reliability (unplanned downtime <0.8%)
• 100% of Integrity Inspection items completed to schedule
• Introduced at least 11 new opportunity crudes since acquisition
• 9% production switched from exports to inland sales (April vs. September 2012)
5
Supply Envelope
Advantaged location
• Positioned to serve the UK Energy Corridor
Natural supply envelope
• North West and Midlands
Leading supply position
• Supported by integration into extensive pipeline logistics and good road links
Product distribution capability
• World class self loading road gantry capable of distributing 26.5 million litres per day
• Direct connection to United Kingdom Oil Pipeline (UKOP)
• Oil docks located on site consisting of six berths enable export of up to 10kt parcels
UK Refining Overview
Humber
LindseyStanlow
Liverpool
Mcr. Airport
Newcastle upon Tyne
NWNE
CC
South
WestSE -WL
SE -Thames
Kingsbury
Manchester
HeathrowAvonmouth
Buncefield
Fawley
Pembroke
Milford Haven
Main Line
Government Pipeline
Finaline
UKOP North
UKOP South
ESSO Midline
Manchester Jetline
The UK Energy Corridor
KEY
The North West and Central Corridor
100 -250 kbpd
>250 kbpd
REFINING CAPACITY
Birmingham
6
Competitive Position
UK Refineries
Significant capacity and complexity
• Well positioned as one of the
lowest cost refineries delivering
product into the UK Market
Lowest cost supplier into the North
West
• The only refinery located in the
North West
Highly competitive in supplying
adjacent markets
• UKOP pipeline connection
• Closest refinery to Birmingham,
Manchester and Liverpool
7
Fawley
Stanlow
HumberLindsey
PembrokeGrangemouth
Milford Haven
100
150
200
250
300
350
4 6 8 10 12
Capacity
Complexity
Original Design Capacity
Operating Max Capacity
Closure of 80kbbls/d capacity in Jan 2012
Business Overview
• Track record of leading operational performance in HSSE, Reliability and Cost
o Continuous improvement
• Strong location and supporting infrastructure
o Waterfront, road and pipeline connections
o Good green belt segregation and supportive local communities
o Ample plot space available for expansion
• Well invested assets and robust asset management processes
• Clear pathways to stay compliant with developing environmental legislation
• On target to become robust against bottom-of-cycle margins
• Delivery of $3/bbl 100 Day Plan progressing ahead of schedule
8
Stanlow Manufacturing Complex
• Natural buffer land between refinery and local populated areas
• Capable of receiving VLCCs partially loaded up to 170kt
HPBH
LPG storage
HD Select/
CD Hydro
CDU3
CDU4
Alcohols
SRUs
Resins
Shell Thornton Research Centre(gifted to University of Chester –completion in 2014)
Shell LuboilBlending Plant
CCU
EBU HFA Aromatics PF3 SHOPRoad Terminal
ManchesterShip Canal
ERP
CrudeTank Farm
Tranmere
HDS
10Note: VLCC – Very Large Crude Carrier
Road55%Pipeline
25%
Water20%
Modes of Distribution
Stanlow is sited on a 650 hectare site
• Natural buffer land between refinery and local populated areas
• Stanlow contained in an industrialised area
Product distribution capability
• World class self loading road gantry capable of distributing 26.5 million litres per day
• Direct connection to United Kingdom Oil Pipeline (UKOP)
• Oil docks located on site consisting of six berths enable export of up to 10kt parcels
Crude import facilities at Tranmere
• Capable of receiving VLCCs partially loaded up to 170kt
1 SCUK SHOP 2 LPG Terminal 3 ResinsLease 4 SCUK Alcs 5 Shell Lubes Plant
6 Shell Thornton* 7 Former Burmah Site (acquired post transition) 8 White Oil Docks
Stanlow Site, including non operational land
3rd Party Land Leased to 3rd Pty
Location & Supporting Infrastructure
* Shell Thornton gifted to University of Chester – to be phased over 18 months from Mar 2013
11
Market Position
0
1,000
2,000
3,000
4,000
5,000
6,000
NW & CC Demand Stanlow Production NW & CC Demand Stanlow Production NW & CC Demand Stanlow Production
Gasoline Diesel Jet
North West Demand Midlands Demand Stanlow Production
Demand/ Production (ktpa)
• 60% of UK demand for transportation fuels is in the Northwest (NW) to Southeast (SE) corridor
o Increasing dieselisation and growing demand for jet and DPK
• Stanlow production well aligned to demand in NW, whilst logistics provide competitive access to Midlands
12Note: DPK – Dual Purpose Kerosene
NW & CC – Northwest and Central Corridor
Inland Sales Profile
Diesel Mogas
Kerosene Gasoil
Chemicals Fuel Oil/Bitumen
LPG Base Oil/Waxes
Shell CBF
International Oil Co Hypers
Independents Chemicals
Marine
Essar sells ~84% of Stanlow production in UK market
13
9%
0%
0%
5%
2%
4%
9%
24%
15%
26%
6%
2%
0% 10% 20% 30%
Refinery Fuel/ Loss
Other
Bitumen
Chemicals
Base Oils
Fuel Oil
Gasoil
Diesel
Jet
Gasoline
Naphtha
LPG
Product Yield Profile
Typical Yield on CrudeHigh Nelson complexity of 8.2 enables high black to white oil conversion
• Fuel oil production is significantly lower than industry norm
• Since 2009, gas-to-liquid imports have supported increased jet and diesel production
Speciality grades
• Production of high octane fuels and bitumen is a differentiator to marker margins
• Aromatics production (Benzene, Toluene)
Chemical grades offer significant upgrading
• Propylene sold via pipeline to an upgrading customer within the UK
• Ethyl benzene is sold 3rd party plant in Netherlands
14
Safety Highlights
Stanlow cares about the safety of employees and Business Partners – We are
determined to stop people getting injured.
• 10 Million man hours without a Lost Time Injury was achieved on June 17th 2012.
• 5 million man hours achieved 3 times since
• Stanlow awarded the 2016 Order of Distinction for Occupational Health and Safety
by RoSPA, the Royal Society for the Prevention of Accidents. For the 20th
Consecutive year
15
Complex site with deep conversion
Large residue cat cracker
Comprehensive petrochemical linkages
CDU3
CDU4
Platformer
HVI Unit
Gasoline Blender
Merox
Propylene Splitter
Fuel Oil Blender
Alkylation
Ethyleneimport
CrudeEthyl Benzene
SHOP
Alcohols (SHF)
Fuel gas
LPG
Alpha Olefins
Internal Olefins
Alcohols
Gasoline
Toluene
Benzene
Ethylbenzene
Jet
Gasoil
Propylene
Fuel Oil
Bitumen
Cat Cracker
Gas Oil HDSGas Oil Blender
Products
Superior Assets
Aromatics Extraction
16